Nomad Foods Limited · NYSE:NOMD
Nomad Foods — Iglo Group — Q3 2015 Earnings Presentation
22 slides from Nomad Foods's earnings presentation, Nov 16, 2015
Slide 1: Iglo Group Earnings Conference Call Q3 2015 Update
Iglo Group Earnings Conference Call Q3 2015 Update Monday, 16th November 2015
Slide 2: Disclaimer
Disclaimer BY READING THIS PRESENTATION, YOU ARE DEEMED TO HAVE READ AND ACCEPTED THE STATEMENT BELOW. This presentation has been prepared by Iglo Foods Holdings Limited. This presentation provides information about Iglo Foods Holdings Limited and its subsidiaries. Any references to Iglo shall mean
Slide 3: Today's presenters
Today’s presenters Stéfan Descheemaeker – Iglo Group CEO Paul Kenyon – Iglo Group CFO A fresh look at frozen 3
Slide 4: Agenda
Agenda • Strategy Evolution • Q3 Financial Performance • Findus Overview A fresh look at frozen 4
Slide 5: Investment Highlights
Investment Highlights Platform to Lead Consolidation Leading Player in the Large and Iconic Brands with Strong in the Fragmented Global Food Resilient Western European Brand Equity Sector Frozen Food Market Attractive Financial Experienced Team with a Multiple Organic Growth Characteristics and Sign
Slide 6: Strategy Evolution
Strategy Evolution A fresh look at frozen 6
Slide 7: Strategy Evolution
Strategy Evolution Organic Critical to respond to ongoing top‐line pressures from discounters and private-label across our markets Growth Long‐term vision to stabilize and grow top‐line based on an identified growth strategy − Save to re‐invest: Cost cutting and disciplined cost management to fu
Slide 8: Q3 Financial Performance
Q3 Financial Performance A fresh look at frozen 8
Slide 9: Q3 and YTD 2015 Performance Highlights
Q3 and YTD 2015 Performance Highlights Q3 • Reported Net Revenue decline was (8.4%). Allowing for currency impacts and the exit from Romania, Slovakia and Turkey, like-for-like Net Revenue decline was (11.2%). • Gross margin declined by (3.3)pp driven by increased promotional investments coupled wit
Slide 10: 2015: Q3 Operating Performance
2015: Q3 Operating Performance €m Q3/14 Q3/15 Delta Net Revenue 344.6 315.5 -29.1 Gross Profit 123.3 102.6 -20.7 Gross profit margin (%) 35.8% 32.5% -3.3% A&P -21.8 -19.6 2.2 A&P (% Net revenues) 6.3% 6.2% -0.1% Indirects -35.6 -25.8 9.8 Indirects (% Net revenues) 10.3% 8.2% -2.1% Depreciation 7.8 7
Slide 11: 2015: Q3 Net Sales Bridge
2015: Q3 Net Sales Bridge Net Sales LFL: (11.2%) FX One-off Market Retailer Portfolio Note: Financials as per management accounts. All financials quoted exclude Nomad Foods Limited expenses. A fresh look at frozen 11
Slide 12: 2015: Q3 Gross Profit Bridge
2015: Q3 Gross Profit Bridge Gross Margin: (330)bps 35.8% FX Vol/Mix Net Pricing 32.5% Note: Financials as per management accounts. All financials quoted exclude Nomad Foods Limited expenses. A fresh look at frozen 12
Slide 13: 2015: YTD Operating Performance
2015: YTD Operating Performance €m YTD 2014 YTD 2015 Delta Net Revenue 1,105.8 1,058.6 -47.2 Gross Profit 387.8 359.3 -28.5 Gross profit margin (%) 35.1% 33.9% -1.2% A&P -86.9 -76.7 10.2 A&P (% Net revenues) 7.9% 7.2% -0.7% Indirects -104.8 -96.9 7.9 Indirects (% Net revenues) 9.5% 9.2% -0.3% Deprec
Slide 14: Cash Flow Generation Remains Strong
Cash Flow Generation Remains Strong Note: All financials quoted exclude Nomad Foods Ltd. expenses (1) Defined as (LTM cash generated from operations – capex)/LTM EBITDA before NR. (2) Gross external debt is calculated as the total of 3rd party senior debt, senior secured notes. A fresh look at froze
Slide 15: Findus Overview
Findus Overview A fresh look at frozen 15
Slide 16: Findus Continental Europe Overview
Findus Continental Europe Overview Business Snapshot Geographic Breakdown – FY2014 Transaction perimeter included non-UK operations only Revenue EBITDA − Key markets: Norway, Sweden, and France Other Other − Other markets: Spain, Finland, Denmark & Belgium 15% 8% Leading frozen food player in ke
Slide 17: Leading frozen food player in key markets
Leading frozen food player in key markets Prominent market position Well known and recognized brand with long heritage Key markets Other(1) Sweden Norway France Finland Spain Geography Overview Significant Retail presence Retail business dominated Principally Retail sales, No manufacturing
Slide 18: Transaction Rationale
Transaction Rationale Strong fit with Nomad’s stated acquisition criteria; compelling strategic and financial logic Further strengthens Europe’s leading frozen business Creates additional scale +c.43% €2.1billion combined sales Iconic brands across key markets Strong Brand Reunites Findu
Slide 19: Findus Acquisition is Transformative and Provides Diversification
Findus Acquisition is Transformative and Provides Diversification LTM Sept-2015 combined net sales (1) LTM Sept-2015 combined adjusted EBITDA (1) €m €m 400 Synergies 2,073 35 Increased scale 619 71 365 1,454 1,454 294 294 + + 2014A: Category split (2) 2014A: Geographical split (3) Poultry Others 9%
Slide 20: Findus Synergy and Integration
Findus Synergy and Integration Pre-deal preparation and planning has enabled a strong start to the integration of the two businesses with a focus on realizing operational cost synergies. Supply Chain – procurement, manufacturing and logistics − Boulogne-Sur-Mer works council agreement signed wit
Slide 21: Investment Highlights
Investment Highlights Platform to Lead Consolidation Leading Player in the Large and Iconic Brands with Strong in the Fragmented Global Food Resilient Western European Brand Equity Sector Frozen Food Market Attractive Financial Experienced Team with a Multiple Organic Growth Characteristics and Sign
Slide 22: Q&A
Q&A A fresh look at frozen 22